RBC plans trigger phoenix autocallables tied to Russell 2000, S&P 500

By Marisa Wong

Morgantown, W.Va., March 4 – Royal Bank of Canada plans to price trigger phoenix autocallable notes due March 29, 2019 linked to the least performing of the Russell 2000 index and the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at an annual rate of 7% to 8% if each index closes at or above the trigger level – 70% of the initial level – on the observation date for that quarter. The exact coupon will be set at pricing.

The notes will be called at par plus the contingent coupon if each index closes at or above the initial level on any quarterly observation date after one year.

The payout at maturity will be par of $10 plus the contingent coupon unless either index finishes below the 70% trigger level, in which case investors will be exposed to any losses of the worse performing index.

RBC Capital Markets, LLC is the agent.

The notes will price on March 28 and settle on March 31.

The Cusip number is 78012KLY1.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.